Applico Capital has launched a new private equity division aimed at helping large B2B distributors adopt artificial intelligence (AI) technologies to modernize operations and accelerate growth.
Rather than pursuing majority control through leveraged buyouts, Applico’s strategy focuses on minority and alternative investments. The firm said it plans to work alongside existing management teams to drive AI adoption, operational improvements, and digital transformation without disrupting company leadership.
“AI is providing a once-in-a-generation opportunity to reimagine B2B distribution,” said Alex Moazed, founder and CEO of Applico Capital, in a statement. He added that the firm seeks to partner with distributors that want to redefine customer, supplier, and employee expectations through advanced technology.
The new division is built on Applico Capital’s venture capital arm, launched in 2023, which invests in startups developing supply chain and distribution technology. Applico’s early investments include companies such as Tradeswell, an AI-driven marketplace analytics platform, and enable, a rebate management software provider used by many industrial distributors. The firm’s venture portfolio is backed by major distributors, including MSC Industrial Supply, Sonepar, and WESCO International.
Nick Johnson, managing partner at Applico Capital, said the firm’s dual approach—combining venture investments with private equity partnerships—creates a feedback loop. “The AI capabilities have reached the point where they are ready to transform the industry and are getting stronger every month,” Johnson said.
The announcement comes amid broader private equity interest in the $8 trillion U.S. B2B distribution sector. A wave of recent acquisitions has targeted distributors investing heavily in AI and digital infrastructure as industry competition intensifies.
Founded in 2009, Applico started as a mobile app developer before transitioning into consulting and investment work focused on digital platforms and marketplace strategies.
Applico Capital said it would seek partnerships with family-owned, employee-owned, and publicly traded distributors. No initial investment targets or financial terms for the new private equity division were disclosed.
The firm’s model emphasizes aligning incentives with management and employees, positioning itself as a “technology operating partner” rather than a traditional financial sponsor.
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